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Inter Revised Full Annual Report 05-07-08

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Inter Revised Full Annual Report 05-07-08 God is our Refuge 3 Contents Group Overview 8 * Group at a glance ---------------------------------------- 9 * Strategies ---------------------------------------------- 10 * Financial highlights ------------------------------------ 13 Our Markets 15 * Corporate Banking------------------------------------- 15 * Investment Banking ------------------------------------ 16 * Commercial Banking ----------------------------------- 16 * Retail Banking ----------------------------------------- 17 * Wealth Management ----------------------------------- 18 * Electronic Banking ------------------------------------- 19 * International Operations -------------------------------- 20 We Care 23 * Customer Care ------------------------------------------ 24 * Human Capital ------------------------------------------ 24 * Social Responsibility ------------------------------------ 25 Corporate Governance 28 * Risk Management --------------------------------------- 32 The Report 35 * Notice of Annual General Meeting --------------------- 36 * Chairman’s Statement ---------------------------------- 38 * Group Chief Executive’s Review ------------------------- 43 * Board of Directors -------------------------------------- 48 * Directors’ Report --------------------------------------- 50 * Management Team ------------------------------------- 56 * Statement of Director’s Responsibility ------------------ 58 * Report of Audit Committee----------------------------- 59 * Report of the Auditors --------------------------------- 60 * Statement of Accounting Policies ----------------------- 62 Financials 68 Report Extras 91 * Management List --------------------------------------- 92 * Branch Network ----------------------------------------- 94 * Proxy ------------------------------------------------- 105 4 4 Our Vision To be the number one financial institution in Nigeria and Africa and among the top 100 in the world. Our Mission To help our stakeholders build and preserve wealth. The Face of Leadership On 16 November 2007, Intercontinental Bank re-branded its identity to re-position itself as a bank that is accessible and desirable to all its customers by broadening its presence, profile and appeal. The repositioning supports Intercontinental’s aspiration to be a good-to-great financial institution – a bank that is the new face of leadership. Intercontinental Bank’s intention is to retain its profile as a bank that delivers excellent customer services thereby, making the customer happy. Our Values Trust in God Integrity Helpfulness Fairness Resilience Excellence 5 4 6 6 7 Group Overview 8 8 Our Group Structure 9 8 Performance Highlights:Strong growth in all areas N=1 trillion Gross revenue up 99% from N=87.35 Billion to N=173.57 Billion Profit before tax up102% from N=22.56 Billion to N=45.63 Billion Total Assets & Contingents up 108% from N=823 Billion to N=1.71 Trillion Market Capitalisation is N827 bn the 2nd highest in Nigeria Quoted Price up 237% from N=13.50 (2006 offer price) to N=45 (29 February, 2008) Deposit Liabilities up129% from N=471 Billion to N=1.08 Trillion 10 Strategies Our core business and customer-centric strategy is based at key commercial hubs in Ghana. Our UK subsidiary on the seamless integration of our customers, our people, has obtained approval and has commenced operation. processes, technology and risk. This approach tailors branch services to meet the needs of the market and is We are deploying specially designed ATM kiosks to centred on the delivery of excellent customer solutions increase our presence at off site locations while improving by focusing on providing products targeted to the service distribution and customer experience. demographics of a local market, thus significantly improving points of contact for our customers, while Passion driving deposit mobilization and customer satisfaction. At Intercontinental Bank, we have an extra-ordinary passion for providing excellent banking services to our The bank is adopting a robust consumer and corporate customers, and we continuously strive to deliver banking approach designed to sustain market leadership and competitiveness through market segmentation, exceptional services and satisfaction to customers in customer relationship management, product innovation, order to enhance their quality of life. This is further improved service delivery and low cost channel emphasized in our corporate philosophy: ‘Happy distribution. Customer, Happy Bank’. The depth of this theme drives us constantly to deliver beyond our customers’ We have strategic partnerships with world-class financial expectations. institutions including BNP Paribas, Vectis Capital, AIG Investments, ECP Investments and other leading organisations for capacity building. We are leveraging This passion is also driven by our strong ethical value: these relationships to further develop our competencies TRUST IN GOD, which forms the framework for all in asset management, consumer finance, insurance and transactions and processes between the bank and its risk management. customers. This underlying principle precedes all businesses we partake in and enables us continually enhance our customer service models to astound our Our global expansion strategy is driven by our vision to customers. be the number one financial institution in Nigeria and Africa and among the top 100 in the world through organic growth and strategic acquisitions. To People accommodate our exponential growth we have Our people are fundamental to our success. We are strengthened our business, technology, operational and passionate about our profession and exhibit a rare risk management processes to achieve efficiency in all understanding of our customer needs in all business our business units. areas. In our pursuit of making Intercontinental an employer of choice, we consistently train our employees With over 300 branches spread across Nigeria and 8 in to anticipate customer needs and fashion out Ghana, we are making steady inroads in Africa through our regional expansion strategy. In 2006, we commenced appropriate and exceptional solutions to these needs our global expansion drive with the acquisition of Citi whilst maintaining a high level of empathy and Savings & Loans Company Limited in Ghana which we professionalism. have since transformed into a universal bank – Intercontinental Bank Ghana with eight branches located 11 10 Strategies (cont’d) A key pillar of our business and customer-centric strategy is to hire highly skilled professionals from national and international organizations and top tier business schools to enable the continued strategic growth of the bank, while providing our customers with top-rated talent to foster product innovation and exceptional customer service. Performance The Group’s financial performance is stellar. We produced strong results for the 2008 fiscal year as reflected in the outstanding growth of major indices. Investor confidence has been tremendous as shown by the growth of our share price in the past year. Our total deposit of N=1.1 trillion as at the financial year ended February 2008, was the highest in the banking industry in Nigeria. We also made history again, as the first bank to cross the N=1 trillion deposit mark in Nigeria reconfirming our status as a clear market leader. Our share price as at 29 February 2008, more than doubled to close at N=45 representing a 114% increase year on year. 12 12 We made history as the 1st Nigerian Bank to cross a Total Key Group Financial Highlights Customer Deposit base of Total Assets NGN in Billion N1 Trillion 1,600.0 1,392.2 1,400.0 1,200.0 1,000.0 800.0 704.8 600.0 400.0 369.2 200.0 203.6 96.8 0.0 2003 2005 2006 2007 2008 Customer Deposits NGN in Billion 1,400.0 Shareholders’ Funds NGN in Billion 1,200.0 1,078.19 1,000.0 250.00 200.41 800.0 200.00 600.0 156.89 471.52 150.00 400.0 254.41 200.0 134.38 100.00 66.39 0.0 54.47 50.00 34.68 2003 2005 2006 2007 2008 10.18 0.0 Profit Before Tax NGN in Billion 2003 2005 2006 2007 2008 50 Net Operating Income 45.63 NGN in Billion 45 40 140 125.6 35 120 30 100 25 22.56 20 80 70.1 15 10.26 60 10 8.14 4.35 5 40 32.7 24.1 0 20 14.6 2003 2005 2006 2007 2008 0 13 2003 2005 2006 2007 2008 14 Our Markets communication and telecommunication (ICT) sectors. We Corporate banking leverage on our robust IT platform and extensive branch network to design and deploy a collection solution most Our Corporate Banking Group targets blue chip appropriate for the needs of our clients in the corporate and multinational institutions with specific telecommunications sector emphasis on the key sectors of the economy. Our team of competent and well trained professionals Transport and Logistics. provides integrated financial solutions that cut across We have developed specialist skills and competencies key industries within our focused sectors: required to provide unique and world-class banking services to multinationals and corporate clients in aviation, maritime/ Energy, Power and Infrastructure shipping, logistics and embassies. Our in-depth knowledge The deregulation of the energy, power and of these businesses and the breadth of our capabilities mean infrastructure sectors of the economy through the that we are always able to meet our customers’ needs quickly licensing of private refineries, independent power and efficiently. plants and other initiatives provide significant investment opportunities within the industry. The Our overriding objective is to build seamless, healthy and enduring business relationships and deliver superior service
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